Harvesting Insights: What Plan Sponsors Can Learn from Their Most Engaged Savers
The financial decisions employees make over time often shape their retirement readiness. By understanding the habits of participants who actively save and use available benefits, plan sponsors can identify opportunities to encourage greater involvement across their workforce.
While every participant’s circumstances differ, certain habits may help participants stay engaged with their retirements savings. These may include saving regularly through payroll deductions, gradually increasing contributions over time, considering the availability of employer matching contributions, and periodically reviewing their accounts. Maintaining a long-term perspective rather than reacting to short-term market movements may also be an important consideration.
Why Participation Matters
Encouraging participation is about more than increasing awareness. When employees understand their benefits and resources, they may make more informed decisions about their retirement savings.
For plan sponsors, this highlights the importance of keeping retirement information easy to access and understand. Clear, timely reminders can help participants stay connected to their benefits without overwhelming them with complex information.
Focus on Actions Employees Can Take
Retirement education may be more effective when it includes practical next steps. Rather than presenting large amounts of information at once, organizations can promote simple actions, such as reviewing contribution levels, confirming beneficiary designations, exploring financial wellness resources, or verifying eligibility for the full employer match.
Small changes may add up over time. A modest increase in savings today may have a meaningful effect over the course of a career.
Open Enrollment Creates a Natural Opportunity
Open enrollment typically focuses on health insurance and other benefit elections, but it also gives employers a chance to reinforce retirement planning messages.
As employees evaluate benefits for the coming year, employers can remind them to revisit savings rates, review account information, and explore available retirement resources.
Including retirement topics within broader benefits communications may prompt participants to take a closer look at their long-term savings strategy.
Keeping Retirement Visible Year-Round
Plan sponsors can create an environment that can help support ongoing awareness and informed decision-making.
Throughout the year, organizations can highlight plan features, explain employer contributions, and provide educational opportunities that help employees understand their options.
The Harvest Is in the Habits
This fall, consider what sets your most engaged savers apart. Their behaviors may offer practical insights into ways to encourage saving, increase awareness of available benefits, and help employees make informed decisions about their financial future.
This is intended for informational purposes only. You should not assume that any discussion or information contained in this document serves as the receipt of, or as a substitute for, personalized investment advice from Savant. Please consult your investment professional regarding your unique situation.
Patricia L. Hutchinson
Director of Retirement Plan Services
AIF®, MBA